Fitch Negative on Bus Operator

Fitch Negative on Bus Operator

February 13, 2013

Fitch has put Inversiones Alsacia’s BB rating on watch negative, it says. Through 3Q 2012, the Chilean bus company's expenses grew higher than revenues, resulting in a 24% contraction of Ebitda, the agency says. A contract change last year heightened its risk profile by significantly increasing the linkage between passenger demand and revenue levels. In the last two years, demand has performed below expectations, Fitch says. The agency also notes higher operational complexity and weakening debt coverage ratios. Alsacia has $464m in senior secured bonds due 2018.

Fitch has put Inversiones Alsacia’s BB rating on watch negative, it says. Through 3Q 2012, the Chilean bus company's expenses grew higher than revenues, resulting in a 24% contraction of Ebitda, the agency says. A contract change last year heightened